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Indicator Formula

Technical Details — Money Flow Index (MFI)

Section titled “Technical Details — Money Flow Index (MFI)”

Overview

Section titled “Overview”

The Money Flow Index calculation produces a bounded oscillator measuring momentum.

Mathematical Derivation

Step 1 — Calculate MFI

Section titled “Step 1 — Calculate MFI”

Purpose: Derive the Money Flow Index value.

See the Money Flow Index formula derivation in technical references.

Where:

  • Period parameters control lookback sensitivity

What This Measures: Momentum strength and direction

Compact Formula Summary

Refer to Money Flow Index formula for compact notation.

Defaults: Period = 14 bars

Complete Calculation Example

See the Money Flow Index technical documentation for worked calculation examples.

Key Takeaways from the Example
  1. Period sensitivity: Shorter periods = more signals, longer = smoother
  2. Threshold selection: Adjust based on asset volatility
  3. Signal line: Smoothed version for crossover timing